1. Brent Pfaff, Jack Bergloff, Mike Byrns

2. Recommendation Vascular Solution is a conditional BUY
Current Price: $ 54.40
Entry price: $ 44.54
Currently Overvalued

3. Company Overview Vascular Solutions (NASDAQ: VASC) Founded in 1996
Clinical solutions for treating coronary peripheral vascular disease.
Healthcare equipment & supplies industry
Headquartered in Minneapolis, Minnesota

4. Industry overview - Porter’s 5 Forces
Barrier to Entry: Large
Bargaining Power of Suppliers: Shrinking
Bargaining Power of Buyers: Increasing
Industry Rivalry: Strong, but weaker for VASC
Threat of Substitutes: Small (Patent Protection)

5. Industry Analysis - Industry Trends
Physicians and large hospitals
Tech innovation continues to drive the market
Industry Consolidation
Devices that help with our age-related problems
The population is becoming older
Hearing, Cardiovascular, Neurological and Endocrinology

6. Industry Analysis - Vascular Solutions Placement
Growing but consolidated market
Small/Medium Size
Niche Company
“Stents & Catheters” segment

7. Vascular Solution’s Market Segment
Interventional Cardiologists (IC)
Interventional Radiologists (IR)
Vein Specialists (VS)
Electrophysiologists (EP)

8. Macroeconomic Trends Pros: Cons: Uncertainty: Interest rate changes
Increase in life span
“Whistleblowers”
Increasing scrutiny among regulations
Unexpected changes:
regulatory
requirements,
trade barriers & tariffs

9. Top Products Product 2015 Revenue (in thousands) Percent of Revenue
GuideLiner® Catheter
$45,409
31.18%
Pronto® catheter
$14,970
10.28%
Vein Catheter reprocessing
$12,602
8.66%
Micro-introducer kits
$12,337
8.47%
Hemostat Patches
$11,988
8.23%
Radial Access
$7,436
5.10%
Langston® catheter
$6,590
4.53%
D-Stat® hemostat
$5,322
3.70%
Other
$28,902
19.85%

10. Important Ratios (12 months Dec, 31 2015)
Vascular Solutions P/E: (as of Nov. 25, 2016) Debt-to-Equity: 0 PEG: 1.99 (as of Nov. 25, 2016) ROA: 7.1% ROIC: 8.23% Gross Margin: 66.3%
Healthcare Equipment
P/E: 26.5
Debt-to-Equity: 39.5%
N/A
ROA: 4.6%
Gross Margin: 46.3%

11. Market Performance Trailing Twelve Months Current share price: $54.50
52 week high: $54.58
52 week low: $24.82
Percent gained: 53.35%

12. Market Performance (cont.)
Revenue growth

13. Market Performance (cont.)
Vascular Solutions
53.35%
Nasdaq
5.29%
Russell 2000
12.05%

14. Discounted Cash Flow Analysis
Key Driver: Revenue growth
Assumptions:
Capitalized Research & Development investment materializes
Capital expenditures will decrease
Continued above average growth
Valuation: $44.54
Current price: $54.35
Results: Overvalued

15. Summary Out performs major indexes Sale strength and Growth Potential
Currently over valued
Entry point: $44.54